Investigating whether the environmental Kuznets curve hypothesis holds for sectoral CO2 emissions: evidence from developed and developing countries

Htike, Myo Myo; Shrestha, Anil; Kakinaka, Makoto

doi:10.1007/s10668-021-01961-5

Cited by 23 publications

(10 citation statements)

References 108 publications

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“…This verifies the EKC hypothesis for the transportation sector. Our findings are also consistent with Kharbach and Chfadi (2017), Ozkan et al (2019), Amin et al (2020), Guo et al (2022), andSheng et al (2022), whereas they contradict Aslan and Gozbasi (2016), Alshehry and Belloumi (2017), Aslan et al (2018), Htike et al (2022), Ferreira et al (2022), andAwan et al (2022).…”

Section: Dynamic Panel Threshold Regression Resultssupporting

confidence: 90%

Testing the environmental Kuznets curve hypothesis in the transport sector for OECD countries: Evidence from a panel threshold model

ÇATIK,

İLHAN,

AKDENİZ

2023

Preprint

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This study tests the environmental Kuznets curve (EKC) hypothesis in the transport sector for 28 OECD countries from 1990 to 2019. The relationship between economic growth and carbon dioxide (CO2) emissions from the transport sector is investigated using a dynamic panel threshold regression based on the GMM estimator while taking into account the effects of road petroleum products consumption, renewable energy consumption, and trade openness. The threshold regression results when gross domestic product (GDP) per capita is used as a transition variable support the nonlinearity of the relationship between CO2 emissions from the transportation sector and GDP by rejecting the null hypothesis of no threshold effect. This finding indicates the existence of two different regimes below and above the GDP per capita threshold, namely the low and high regimes. In the lower regime, economic growth damages the environment, whereas, it improves environmental quality above the threshold. The results indicate an inverted U-shaped relationship and support the EKC hypothesis in the OECD transportation sector. They also imply that economic growth is essential for reducing transport-related CO2 emissions because it is expensive to invest in eco-friendly technologies.

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Section: Dynamic Panel Threshold Regression Resultssupporting

confidence: 90%

Testing the environmental Kuznets curve hypothesis in the transport sector for OECD countries: Evidence from a panel threshold model

ÇATIK,

İLHAN,

AKDENİZ

2023

Preprint

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“…In the service sector, the capital stock has no effect on CO2 emissions, while increases in the capital stock of other sectors lead to significant reductions in environmental degradation. Our findings on the aggregate and sectoral EKC hypothesis are consistent with the findings of recent studies such as Htike et al (2022), Ferreira et al (2022 and contrary to the findings for the industrial sector in Dogan & Inglesi-Lotz (2020).…”

Section: Empirical Findingssupporting

confidence: 80%

“…Each sector's energy requirements within an economy can differ based on the availability of energy resources, technological development, economies of scale, and government-implemented policies. For this reason, the fact that different sectors follow different paths in the production process may cause the relationship between carbon dioxide emissions and income to differ (Htike et al, 2022).…”

Section: Introductionmentioning

confidence: 99%

Testing the Kuznets Curve Hypothesis at the Sector Level: Evidence from PNARDL for OECD Countries

Songur,

Uğurlu,

Muratoğlu

et al. 2024

Preprint

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Since the contribution of economic sectors to GDP is heterogeneous, they also contribute differently to CO2 emissions and environmental degradation. Although many studies investigate the Environmental Kuznets Curve (EKC) hypothesis, there are still gaps in this literature, specifically in sectors. This study contributes to the literature in several ways. First, it examines the validity of the environmental EKC hypothesis for four different sectors (Agriculture, Industry, Manufacture and Service). Second, the impact of energy consumption on CO2 is examined asymmetrically. Finally, annual data from 38 OECD countries from 1990 to 2022 are used to fill this gap. The method used in the study is a new panel nonlinear ARDL to capture the asymmetric effect of energy consumption on CO2. The findings show that the EKC hypothesis is valid for sectors other than the industrial sector and for the overall economy. The turning point of the Kuznets Curve for the total economy is estimated as $29250 GDP per capita. The PNARDL model's error correction term (ec) is negative and significant. However, the magnitude of the term suggests that the system will return to long-term equilibrium after approximately 2.87 years following any shock. It has been determined that agriculture is the sector that causes the most environmental degradation by increasing CO2 emissions. This situation highlights the limited availability of productive capital equipment and renewable sources in the agricultural sector, even in OECD countries. Moreover, the empirical results clearly show that energy consumption has asymmetric effects on emissions in both the long and short run. Positive and negative shocks in energy consumption increase CO2 emissions in OECD economies in the long run. Asymmetric effects are valid for four sectors. Jel Codes: Q42, Q43, Q53

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“…Other researchers have looked at the carbon reduction effect of industrial restructuring using the input–output table, STIRPAT, and other models [ 26 , 27 , 28 ]. (3) The impact of industrial restructuring on carbon emissions at different scales: Scholars have addressed this issue from the global, national, regional, and urban scales [ 29 , 30 , 31 , 32 ].…”

Section: Literature Reviewmentioning

confidence: 99%

Study of the Impact of Industrial Restructuring on the Spatial and Temporal Evolution of Carbon Emission Intensity in Chinese Provinces—Analysis of Mediating Effects Based on Technological Innovation

Wang

et al. 2022

IJERPH

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Global warming caused by greenhouse gas emissions seriously threatens a region's sustainable environmental and socioeconomic development. Promoting industrial restructuring and strengthening technological innovation have become an important path to achieving pollution and carbon reduction as well as the green transformation of economic structure. This paper explored the mechanism of the mediating effect of technological innovation on industrial restructuring and carbon reduction while accounting for the direct effect of industrial restructuring on carbon emissions. Then, based on China's provincial panel data from 2001 to 2019, we estimated the carbon emission intensity using the Intergovernmental Panel on Climate Change (IPCC)'s methods and analyzed its spatiotemporal evolution characteristics. Finally, we constructed a fixed-effect model and a mediating effect model to empirically analyze how industrial restructuring and technological innovation affect carbon emission intensity. The results are as follows: (1) From 2001 to 2019, China's carbon emission intensity showed a continuous downward trend, with a pronounced convergence trend; there were obvious differences in carbon emission intensity between eastern, central, and western regions (western region > central region > eastern region) due to the unbalanced industrial structure. (2) In terms of direct effects, industrial restructuring can significantly reduce carbon emission intensity. The intensity of the effect is inversely proportional to the level of industrial restructuring, and the results of sub-regional tests are similar. Nevertheless, there is an obvious regional difference in the size of the carbon emission reduction effect of industrial restructuring in the east, central, and western regions. (3) In terms of indirect effects, industrial restructuring can reduce carbon emission intensity by enhancing technological innovation, and it acts as a mediating variable in the process of industrial restructuring to reduce carbon emission. Finally, we put forward recommendations for promoting industrial restructuring, strengthening green technological innovation, and properly formulating carbon reduction measures to provide a reference for countries and regions to achieve the goals of carbon neutrality, carbon peaking, and high-quality economic development.

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Investigating whether the environmental Kuznets curve hypothesis holds for sectoral CO2 emissions: evidence from developed and developing countries

Cited by 23 publications

References 108 publications

Testing the environmental Kuznets curve hypothesis in the transport sector for OECD countries: Evidence from a panel threshold model

Testing the environmental Kuznets curve hypothesis in the transport sector for OECD countries: Evidence from a panel threshold model

Testing the Kuznets Curve Hypothesis at the Sector Level: Evidence from PNARDL for OECD Countries

Study of the Impact of Industrial Restructuring on the Spatial and Temporal Evolution of Carbon Emission Intensity in Chinese Provinces—Analysis of Mediating Effects Based on Technological Innovation

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